US Natural Gas Jumps 1% Amid Warmer Temperatures

Natural gas futures rose more than 1% to close out the trading week as the energy commodity has been pushing higher in recent sessions. Prices could be finding support on expectations of a hot summer, which would fuel cooling demand days across the United States.

June natural gas futures jumped $0.028, or 0.97%, to $2.922 per million British thermal units (Btu) at 12:06 GMT on Friday on the New York Mercantile Exchange. Natural gas is on track for a weekly gain of more than 6% but remains down 7% this year.

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Unlike crude oil, natural gas has not experienced substantial volatility, and its performance has been tepid.

Production remains intact, and supplies are building ahead of summer-like temperatures.

For the week ending May 8, domestic natural gas inventories climbed 85 billion cubic feet, up from 63 billion cubic feet in the previous week, according to the US Energy Information Administration.

This was in line with the market forecast.

The build was broad-based, led by the South Central (27 billion cubic feet), the East (27 billion cubic feet), and the Midwest (24 billion cubic feet).

In total, US natural gas storage reached 2.29 trillion cubic feet, up 51 billion cubic feet from the same time a year ago. Levels are also 140 billion cubic feet above the five-year average.

“Natural gas is trying so hard to be bullish but faces big headwinds,” Phil Flynn, energy strategist at The PRICE Futures Group, said in a note on Thursday.’

“This keeps the injection season building robustly into summer, which is generally bearish unless offset by weather concerns or any surprises like a bullish miss with a smaller build due to lighter winds/power demand.”

In other energy commodities, June West Texas Intermediate (WTI) crude oil futures surged $3.31, or 3.27%, to $104.48 per barrel. July Brent crude futures climbed $2.83, or 2.68%, to $108.55 a barrel. June gasoline futures jumped $0.0447, or 1.24%, to $3.6504 per gallon. June heating oil futures surged $0.1142, or 2.92%, to $4.0198 a gallon.

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